Gold prices rebounded sharply, climbing nearly 3 percent as renewed safe-haven demand and global economic uncertainty pushed bullion back above the $5,000 mark.
Gold prices surge on renewed safe-haven demand
Due to safe-haven buying, gold prices increased 2.92 percent on February 4 at $5,079 per ounce as of 2:53 am GMT. The metal’s futures price on MCX ended the Tuesday session at Rs 153,650, down 0.1 from the previous finish of Rs 1,53,809 per 10 kilos.
In the meantime, the Rupee was down 0.10 percent in a day and 1.89 percent in a week, trading at 90.30 against the US dollar. As US President Trump reduces India’s tariff from 50% to 18%, which is anticipated to ease trade between the two nations, trade analysts anticipate a decline in the USD-INR exchange rate.
🟡 Gold Price Snapshot
- Date: February 4
- Spot Gold: $5,079 per ounce
- Daily Gain: +2.92%
- MCX Close: Rs 1,53,650 per 10 grams
- Market Driver: Safe-haven buying
- Trend: Strong rebound from recent lows
MCX gold rallies sharply as CME prices jump
“MCX gold gained around Rs 8,000 intraday after rallying above Rs 1,51,000 as a result of CME Gold surging above 4,900$ in the first session. Jateen Trivedi, VP Research Analyst-Commodity and Currency at LKP Securities, stated, “The breakthrough shows increased safe-haven buying and short covering at lower levels.”
The US Nonfarm Payrolls and Unemployment statistics will be keenly monitored this week, Trivedi continues, as they continue to be crucial components of the Fed’s rate forecast and have the potential to cause additional volatility in bullion. Technically, gold has immediate support at about Rs 1,45,000 and resistance at about Rs 1,55,000.
⚠️ Key Triggers to Watch
- US Data: Nonfarm payrolls & unemployment rate
- Fed Outlook: Interest rate expectations
- Support Level: Rs 1,45,000 / $4,600
- Resistance: Rs 1,55,000 / $5,100
- Risk Factor: Global economic uncertainty
- Sentiment: Safe-haven driven
Gold rebounds amid US data uncertainty
According to the February 3 Augmont Bullion newsletter, gold has risen almost 10% from recent lows as markets account for the partial government shutdown that has caused crucial US economic data to be unavailable and a renewed desire for deals. After Congress failed to provide funding for the Labor Department and other agencies, creating short-term uncertainty, the shutdown started.
As the US-India trade agreement has helped the Indian rupee, the USD/INR exchange rate has increased by almost 1%, reaching 90.20. Despite positive long-term fundamentals, lesser uncertainty and a stronger rupee may temporarily constrain domestic gold and silver prices by reducing safe-haven demand and decreasing import costs, even while tariff cuts to 18 percent boost trade ties.
Gold price outlook and key support levels
According to the research, gold prices could continue their upward trend toward $5,000 (Rs 1,55,000), with $4,600 (Rs 1,39,000) providing significant support.
Frequently asked questions
1. What caused the price of gold to rise again above $5,000?
As investors responded to global anxiety, a declining US dollar, and anticipation regarding important US economic data and Federal Reserve policy, gold prices increased as a result of fresh safe-haven buying.
2. In the most recent session, how much did gold gain?
Strong buying momentum and short covering at lower levels propelled gold’s roughly 3% increase to $5,079 per ounce.
3. How do you see the price of gold right now?
With immediate support close to $4,600 globally and around Rs 1,45,000 on the MCX, analysts predict that gold will continue its recovery toward $5,000–$5,100 levels.
4. What effect does the US-India trade agreement have on Indian gold prices?
While global gold prices continue to be supported, tariff reductions and a stronger rupee may restrict short-term steep increases in domestic gold prices by lowering import costs.
5. What significant occurrences might affect gold prices in the future?
Future US nonfarm payrolls and unemployment statistics are important because they will influence expectations for US interest rates and may increase market volatility for bullion.
Conclusion
Due to revived demand for safe havens, short covering, and anxiety around the state of the world economy, gold prices have experienced a robust recovery, climbing by almost 3%.
Analysts are optimistic about gold’s medium-term prospects, even though a stronger rupee and a reduction in trade tensions may limit domestic prices in the immediate future. Bullion markets are likely to be turbulent due to upcoming important US economic data, which will keep investors looking for stability focused on gold.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice.
